E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 15, 2018 Forecast

June E-mini NASDAQ-100 Index futures are trading lower shortly after the opening. The selling is being fueled by a jump in U.S. Treasury yields and expectations for further rate hikes.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7013.50 will signal a resumption of the uptrend.

Today’s sell-off helped make 7013.50 a new minor top.

After a 7 to 10 day rally, we tend to see 2 to 3 day short-term corrections so I’m not surprised by today’s sell-off.

The main range is 7214.50 to 6306.75. Its retracement zone is 6867.75 to 6760.50. Trading on the strong side of this zone will give the index an upside bias.

The short-term range is 6538.00 to 7013.50. If there is a further correction then its retracement zone at 6775.75 to 6719.50 will become the primary downside target.

Daily Technical Forecast

Based on the early trade, the direction of the June E-mini NASDAQ-100 Index today is likely to be determined by trader reaction to the main Fibonacci level at 6867.75.

A sustained move over 6867.75 will indicate the presence of buyers. If they can generate enough upside momentum, we could see a retest of 7013.50.

Taking out 6867.75 with conviction will signal the presence of sellers. This could trigger an acceleration to the downside with a pair of 50% levels at 6775.75 and 6760.50 the primary downside target.